Given your reference to dividends (assume outside IR35) and a day rate of £325, it's very difficult to arrive at a figure close to £28k, even assuming you work most weeks and this includes both company and personal taxes where all distributable profit is divvied out. It's kinda odd that you'd ask this question of us before asking your accountant though. Get them to break down the estimate for you, which may include a healthy margin for error (or they're projecting £14k as your year end liability, but that wouldn't make a lot of sense either).
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
general idea of end of year taxes
Collapse
X
-
-
Originally posted by jmo21Of course my example does not show him withdrawing divvies.Comment
-
Originally posted by jamesbrown View PostIt's kinda odd that you'd ask this question of us before asking your accountant though).Comment
-
Originally posted by Alan @ BroomeAffinity View PostPossibly a good example of the failings of an online accountant?Comment
-
Originally posted by jamesbrown View PostPossibly, I have no experience of such a practice. However, they presumably have qualified accountants available on the phone (if not a personal accountant). Otherwise, it's just ~ Free Agent (which might do a better job, incidentally ).
Yeah, FreeAgent should be able to help with most of the OP...but it's software, so data out is only as good as data in.
Wonder if the OP will come back to this thread...the above suggestions look plausible to me, though wondered if perhaps it was inside IR35 rather than a VAT issue? Who knows...Comment
-
Originally posted by Maslins View PostWonder what people have in their mind when they say "an online accountant". It's not a different breed of part cyborgs hooked up to the web...typically just a firm who tend to use email and cloud software as a preference over regular meetings/phone calls and posting stuff.
Yeah, FreeAgent should be able to help with most of the OP...but it's software, so data out is only as good as data in.
Wonder if the OP will come back to this thread...the above suggestions look plausible to me, though wondered if perhaps it was inside IR35 rather than a VAT issue? Who knows...
Anyway, it could be VAT or it could be a deemed payment, but neither make an awful lot of sense to me (VAT is paid quarterly and a deemed payment is presumably paid monthly in the context of RTI?). Perhaps the OP has been feeding their online cyborg the wrong info.Comment
-
cheers for all the info guys, been helpful.
Some more details if poeple want to know
I withdraw as a dividend anything left in my account above the amount they ask me to leave in there for future taxes, i also take out expenses, mileage and pension and a weekly salary of £190.
I am outside IR35
Typical number of days invoiced will be 19-20, ive had quite a few holidays, one month was 15days another 24days etc
I am on the flat rate VAT scheme as an IT company so i dont know if this will make any difference.
When i say online accountants i just mean that i submit all my expenses through their website and most contact is done this way as well, im sure they are all qualified.
I will also contact my accountant today and ask for a breakdown and to check that nothing is out of the ordinary.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment